Founders often try to build scalable "tollbooth" pipelines (e.g., content, targeted ads) too early. This is a mistake because the specific customer demand is still unknown. A tollbooth strategy is only effective after achieving 5-10 nearly identical customer wins, which provides the necessary conviction and data to target the right moment of need.
Related Insights
The unmeasured activities between lead generation and opportunity creation—the "pipeline black box"—is the biggest failure point for B2B companies. Analyzing this SDR/BDR process for patterns is the key to systematically engineering pipeline growth, not just guessing.
Founders often mistake $1M ARR for product-market fit. The real milestone is proven repeatability: a predictable way to find and win a specific customer profile who reliably renews and expands. This signal of a scalable business model typically emerges closer to the $5M-$10M ARR mark.
A business's core function is to become a system for repetition. This starts by finding one customer with strong demand, delivering a supply that fits perfectly, and documenting that success. The entire business then becomes a 'factory' optimized to find and replicate that initial case study.
A "tollbooth" strategy finds a choke point of acute customer need. ClickUp built a tool to find 1-star reviews for competitors, then messaged those users immediately. This intercepted customers at the precise moment their existing option became unworkable, making ClickUp's alternative incredibly compelling and efficient for acquiring their first 100 customers.
Founders often believe their product is flawed when facing rejection. However, if they're only speaking to 1-2 potential customers a week, the core issue isn't product-market fit. The real problem is an insufficient number of conversations to validate or disprove any hypothesis. You haven't earned the right to have a PMF crisis yet.
A startup's core function is to find one successful, repeatable customer 'case study' and then build a factory (pipeline, sales, delivery) to replicate it at scale. This manufacturing-based mental model prevents random acts of improvement and helps founders apply concepts like bottleneck theory to know exactly where to focus their efforts for maximum impact.